Following NFP Which Factor Wins Out - Risk Appetite or US Rate Expectations?

The US economy surprised forecasts, posting a much better than expected 244K jobs created during the month. Forecasts were calling for a 185K increase, and from other data this week expectations had build for a soft release.

With upward revisions to February’s and March’s data, this is the 3rd straight month

Forex: U.S. Non-Farm Payrolls Expand 244K, U.S. Dollar Rally Cut Short By Risk Appetite

The 244K expansion in U.S. Non-Farm Payrolls certainly sparked a rebound in risk appetite, with the higher-yielding currencies gaining ground following the larger-than-expected rise in employment, but the data ultimately generated a bearish reaction in the USD, halting the near-term correction across the major exchange rates.

FOREX: Focus Turns to US Data After China Sinks Risk Appetite

Sentiment trends are still in focus, with all eyes now focused on the US data calendar after hawkish comments from China’s central bank fueled risk aversion overnight.

Better Than Expected April ISM Manufacturing PMI Sparks Risk Appetite Rally

The manufacturing sector in the US has been at the forefront of the US recovery, but today, data was expected to show activity cooling from its recent levels.

The ISM Manufacturing index hit a level of 61.2 in March, following a 61.4 reading in February, which was the best since May

Forex: Dollar Recovery Hits a Road Block as Data Prints Strong and Risk Appetite Rallies

Though it was not a dramatic change from the circumstances we were experiencing through the end of last week, the US dollar showed an exceptional level of volatility through the opening 24 hours of the trading week. Now, the trading community must determine whether this is a sign that the New Year has encourage a resolution of increased activity amongst its participants or whether trading conditions are simply still distorted.